Calculate the after-tax cost of debt for loans

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Reference no: EM131460357

1. Calculate the after-tax cost of debt for loans with the following effective annual interest rates and corporate tax rates.

a. Interest rate, 10%; tax rate, 0%.

b. Interest rate, 10%; tax rate, 22%.

c. Interest rate, 10%; tax rate, 34%.

2. Which of the following would qualify as a 1031 exchange?

A. An ice cream maker for inventory of rocky road ice cream

B. Land for an office building

C. Office equipment for a common stock

D. All of the above

Reference no: EM131460357

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